Electricity Tariff Increased By 18.36%: PURC Raises Cost of Power To Prevent 'Power Outages

• Electricity tariff has been increased for the second time this year alone, this time by 18.36%
• In January 2023, the PURC announced that electricity would cost 29.96% more while water costs 8.3%
• The latest increase, according to PURC, is because the cost of producing electricity has gone up significantly and the 18.36% will help power producers to deliver on their mandate

The regulator of utility tariffs in Ghana has announced an 18.36% rise in the cost of electricity from June 1, 2023.

The Public Utilities Regulatory Commission (PURC) explained in a statement that the upward increase for all groups of electricity consumers is to enable power providers to deal with the increased cost of producing power.

The PURC said the increases will also prevent prolonged power outages and the associated negative impacts like unemployment and disruption in business activities.

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Cost of producing power has gone due

The PURC explained that Ghana Cedi-dollar exchange rate, inflation, electricity generation mix, and the Weighted Average Cost of Natural Gas (WACOG) have all hiked the cost of producing power.

“This review has become necessary to maintain the real value of the cost of supply of the utility services,' the PURC said in the statement.

Ghanaians hit with higher tariffs on 5 essential utilities at the start of 2023

Meanwhile, YEN.com.gh has reported in a separate story that the increasing cost of essential utilities in Ghana in early 2023 demonstrates that the cost of living in Ghana is getting high every passing day.

The cost of water, electricity, fuel, internet and even cable TV has gone up in ways that seek to worsen the economic hardship Ghanaians are currently facing.

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Already the price of food has been hit by a 54.1% inflation although public sector salaries have been increased by only 30%.

In January this year, the utility regulator announced higher tariffs for electricity and water in its 2023 first-quarter tariff review.

The PURC said at the time that electricity would cost 29.96% more while water costs 8.3% more, in what many fear will hike up the cost of living.

The regulator said the increase in electricity tariff for instance is important to prevent the country from going back to the days of erratic power supply or 'dumsor'.

Source: YEN.com.gh